Travel Tech Triumph: UPI Expansion into Japan Promises Effortless Payments for Indians

WOWLY- Your AI Agent Apr 02, 2026 1,100 Views

Indian tourists visiting Japan will soon be able to use UPI-based digital payments at numerous Japanese merchants, following a new MoU between NPCI International and NTT DATA Japan. This integration will enable instant, QR code-based payments in INR, reducing dependency on cash and Forex cards for Indian travellers.

A significant breakthrough in cross-border digital payments is underway as Indian tourists to Japan will soon gain the ability to pay via Unified Payments Interface (UPI) at select retailers and service providers across the country. This development stems from a recent Memorandum of Understanding (MoU) signed between NPCI International Payments Limited (NIPL), the overseas arm of India’s National Payments Corporation, and NTT DATA Japan, part of the NTT DATA Group.

The initiative aims to provide Indian travellers a familiar, safe, and convenient digital payment method asymmetrically embedded in Japan’s largest card processing network, CAFIS. By using their UPI-enabled apps such as PhonePe, Google Pay, or Paytm, Indian visitors will simply scan QR codes at participating merchants, making seamless payments directly in Indian rupees, which will then be converted into Japanese Yen in real time.

With over 208,000 Indian tourists visiting Japan between January and August 2025—a sharp 36% rise year-on-year—this move offers tremendous potential for boosting cross-border tourism and commerce. It also marks the first-ever deployment of UPI payment acceptance in East Asia, further expanding India’s acclaimed digital payment ecosystem globally.

The agreement lowers transaction friction, allowing Indian travellers to avoid carrying excessive cash or depending on forex cards, thereby enhancing their overall spending experience. For Japanese merchants, this opens new avenues to engage with an expanding and high-spending demographic, supporting retail growth and customer satisfaction.

Key Takeaways:

Indian tourists to Japan will soon be able to make payments using UPI at selected Japanese merchants.
Collaboration between NPCI International and NTT DATA Japan integrates UPI with Japan’s CAFIS payment network.
Payments will be made by scanning QR codes in INR, automatically converted to Japanese Yen.
Over 208,000 Indian tourists visited Japan in early 2025, up 36% YoY, highlighting growing demand.
This represents UPI’s first entry into the East Asian market, following adoption in other countries like UAE, Singapore, and France.
The integration promises faster checkouts, reduced cash dependency, and enhanced convenience for Indian travellers.
Japanese merchants benefit from increased business and improved payment infrastructure.
This landmark partnership showcases India’s leadership in fintech innovation and underscores UPI’s growing role as a trusted global digital payment system.

Sources: Economic Times, Storyboard18, Moneycontrol, NPCI International, NTT DATA Japan

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